Teacher: November 13, 2007University: Background of the CompanyDerek cresswell formed a company ‘Gateway Engineering Limited’ that is present in the business scenario for the last 47 years. Later on, a multi-national company purchased the right of ownership. Directors have acquired the services of a new CEO with the determination of placement of focus on customer. Staff strength at present is 1400. Fifteen years earlier, there were 3500 people on the payroll of company. There are four divisions in the company located at different places in North East of England. A diversification of services is present with company targeting both business as well as public customers.
Problem IdentificationThe strength of company, as compared to fifteen years ago, is less than half. The company in the past had developed particular techniques along-with effective management systems. These attributes were attractive enough for the customers who were in need to ‘contract out, some fraction of their sources of business. Resultantly company had developed a broad customer base due to the diversification in their client services. They offered service for engineering, construction and other industries.
The dynamics of business necessitated the use of developed IT systems. This proved to be a crucial set back for the company. In addition, the operation costs also rose and profits started declining. Management of the company made strong efforts to decrease the outflow of employees that were not fruitful at the day end. Company in order to resist against redundancies, offered a part of their services even to the general public, that included contract purchase of gas, electricity and oil, etc. Almost all of the restructuring efforts were in vain and company shed its staff.
For the past year, company has witnessed a huge turnover of the staff and having trouble to hire new employees. This problem persists even today. Present scenario is that company has succeeded in winning a new contract that requires an additional hiring of around 850 people in the coming two years. The problem of high turnover and hindrances faced in finding new employees certainly presents one of the major issues, as it has to hire around 850. People Management A process required to create a working environment that is essential for an organization.
It sets such environment in which the staff can perform their duties to the best of their capabilities and abilities. People management is in fact a full-fledge system. It starts when there is a need of a job and does not end until the employee leaves the firm. Human Resource Management Cycle- Its roleThere are specific components of human resource management cycle. In order to define and critically analyze the complexities of Management cycle, we discuss the different aspects. There are resources available to every organization, especially for hiring purposes.
There are two main categories of resources, particularly for the hiring of people. An organization can utilize internal as well as external resources. Employees that are currently serving in the organization forms an important part of job pool. The vacancies correspond to promotions or transfers.